Tag Archives: Delinquency Rate

In June, over 700,000 loans that were once current became newly delinquent, leading to a near 10 percent month-over-month spike in the national delinquency rate, according to a report from Lender Processing Services (LPS). Though, the sudden uptick in delinquencies is actually not surprising when looking at previous trends, LPS found. ""Over the last 18 years, similar changes occurred in June for all but four of those years,"" said Herb Blecher, SVP of LPS Applied Analytics. When examining the increase on a quarterly basis, Blecher also noted the rise was actually moderate compared to previous years.

Completed foreclosures and distressed inventory continued their downfall in June, CoreLogic reported Tuesday. Data for last month showed 55,000 homes were lost to foreclosure, down 20 percent from June 2012. The level of foreclosure inventory also came down in June. According to CoreLogic's estimate, about 1 million homes were in some stage of foreclosure, which represents a 28 percent annual decrease. The yearly decline marks the 20th consecutive month inventory has trended down.

After five months of declines, the national mortgage delinquency reversed course in June, according to data from Lender Processing Services (LPS). From May to June, the delinquency rate shot up by 9.9 percent, ending at 6.7 percent, LPS reported. The increased delinquency rate represents the highest level since February of this year. Despite the increase, the delinquency rate still posted an annual decrease from last year. Compared to June 2012, the delinquency rate is down by 6.5 percent.

The rate of performing borrowers who rolled into delinquency status decreased in the second quarter, Fitch Ratings reported Monday. New delinquency roll rates showed stronger performance across all categories (subprime, Alta-A, and prime), with non-agency roll rates hitting their lowest level since early 2007. Overall, Fitch's delinquency roll rate index fell to 2 percent in the second quarter of this year, down from 2.4 percent in the previous quarter and down from 2.2 percent a year ago.

Foreclosures and mortgage delinquencies may be declining, but that doesn't mean the industry should let its guard down. In the Obama Administration's latest housing scorecard, which provides an overview of the housing market based on private and public sector data, officials continued to warn of a ""fragile"" recovery despite improvements. ""[W]e remain cautious because although mortgage delinquencies are trending down, they still remain quite high compared to historic norms,"" said Kurt Usowski, assistant secretary for economic affairs at HUD.

More bank professionals expect mortgage delinquencies to decline over the second half of this year than to than to stay the same, according to a survey released by FICO. This is the first time in the quarterly survey's history the number of professionals expecting mortgage delinquencies to decline outpaced those who expect it to remain the same. Forty-seven percent anticipate a decrease in mortgage delinquencies over the last two quarters of the year compared to 41 percent who delinquencies to remain the same.

Fewer than 2 million homes remain in shadow inventory as of April, CoreLogic reported Tuesday. This puts shadow inventory at a supply of 5.3 months and represents an 18 percent year-over-year decrease. The data provider also reported shadow inventory is 34 percent lower than the 2010 peak of 3 million. Currently, serious delinquencies make up the bulk of shadow inventory. Out of the total for shadow inventory, about 890,000 are serious delinquencies.

Delinquencies saw the steepest year-to-date drop since 2002 in May as new problem loan rates inched toward pre-crisis lows, according to Lender Processing Services' (LPS) Mortgage Monitor report released Monday. Since the end of December 2012, the delinquency rate has fallen by more than 15 percent to 6.08 percent in May. ""In large part, this is due to the continuing decline in new problem loans -- as fewer problem loans are coming into the system, the existing inventories are working their way through the pipeline,"" he added. LPS also reported the national equity rate is at 14.7 percent, which translates into 7.3 million loans and represents a 47 percent annual decrease.

May's percentage is the first time the recovery has passed 60 percent since the crash, according to the latest Housing Barometer from Trulia. April's barometer was 54 percent. A year ago, the barometer was at only 35 percent. The monthly report measures three key housing market indicators--construction starts, existing-home sales, and the delinquency-plus-foreclosure rate--to track how quickly the market is recovering to its normal, pre-bubble state.

Industry indicators such as rising prices, increases in construction, and declines in the number of underwater homeowners tell a story of a broad housing recovery, but Harvard's Joint Center for Housing Studies (JCHS) sheds light on a less popular story in a report released Wednesday. Homeownership is down, and consumer spending on housing as a portion of income is up. Market conditions are pushing more households into rentals, even those in categories that used to maintain high homeownership rates.